LHFA First Time Home Buyer Bond Program

[Marshall F. Graham]

WE ARE NOT CURRENTLY OFFERING THIS PROGRAM!

By: Marshall F. Graham
Aulds Horne and White
www.auldshorneandwhite.com
marshall.graham@auldshornewhite.com
(318) 869-4444

2007C Louisiana First Time Home Buyer Program


Assisted Program:


Provides the client 4% of the loan amount to be used towards payment of

closing and prepaid costs.. Any remainder will come directly off of the loan

amount. The rate for this program is 6.5%

* NO LOAN ORIGINATION FEE




Low-Rate Unassisted Program:


Provides the client with a low rate of 5.95%

* NO LOAN ORIGINATION FEE




Qualifications are as follows:


1. First Time Home Buyer - Defined as anyone, including spouse if joint,
who has not had ANY ownership interest in a property in the last three
years... (This includes mobile homes, and any properties owned outside of
Louisiana, but excludes ownership of land).

2. Income Limitations - Family of 2 or less = $48,500 Annualized Gross
Income. Family of 3 or more = $55,700

* These income figures are for Caddo and Bossier Parish
* These figures assume for all income including interest earned


3. Good Credit Standing - All applicants must be of good credit standing,
in other words they must still be able to qualify through a conventional
means. This program does NOT make it easier for a potential client to
qualify with a sub par credit score.



Issuance Date: October 30th, 2007
We are recommending that we begin qualifying candidates today, to ensure
that we have enough time to not only qualify them, receive all required
documentation, and order the appraisal, but so that we can also allow them
the much needed time to find a home if they have yet to do so...


Marshall F. Graham
Aulds Horne and White
425 Ashley Ridge Blvd. Ste. 102
Shreveport, LA 71106

Wk - (318) 869-4444
Fax - (318) 868-8942



Example 1 Unassisted Bond Program:


Tom and Sue are recently married and earn a combined income of $50,000. They have been setting some money aside for their daughters college fund, but have been able to save $4500 to be used for the purchase of their first home. They realize $4500 is not a substantial amount of money, but they hope that they can get into a 100% financing program, and that the $4500 will at least pay for the closing costs. Tom previously owned a home, but he sold it in 2003, and has been living in a rent house while he pursued a degree. Sue has a credit score of 680, and Tom has a credit score of 640. They have their eye on a three bedroom home in South Highlands that is listed at $180,000 and would like to know if they would be able to afford it...Sue tells the loan officer that they have a car payment each month of $350, and have 2 credit cards with a monthly minimum payment of $75 each.


The following can be computed:

Total Monthly Income = $4,166
Current Monthly Payments = $500
Current Debt Ratio = 12%


With Bond Program:

Estimated New Housing Payment = $1,517 (*Based on 100% Financing at 5.95%)
Estimated Closing and Prepaids = $4,611 (*No Loan Origination Fee)
Estimated Average Sellers are willing to contribute = $2,000
Total Cash Required for Closing = $2,611
Remaining Cash on Hand = $1889
Cash Reserves Remaining = 1

APPROVED!


Without Bond Program:

Estimated New Housing Payment = $1,566 (*Based on 100% Financing at 6.375%)
Estimated Closing and Prepaids = $6,152 (*With 1% Loan Origination Fee)
Estimated Average Sellers are willing to contribute = $2,000
Total Cash Required for Closing = $4,152
Remaining Cash on Hand = $348
Cash Reserves Remaining = 0

DENIED!


Marshall F. Graham
Aulds Horne and White
425 Ashley Ridge Blvd. Ste. 102
Shreveport, LA 71106

Wk - (318) 869-4444
Fax - (318) 868-8942


Example 2 Assisted Bond Program:

Tom and Sue are recently married and earn a combined income of $50,000. Tom is the primary bread winner, and has been employed for a year and a half. Since they had to pay for their own wedding, they have only been able to put $1600 in the bank, and are hoping to get into a 100% financing program. Tom previously owned a home, but he sold it in 2003, and has been living in a rent house while he pursued a degree. Sue has a credit score of 680, and Tom has a credit score of 640. They have their eye on a three bedroom home in South Highlands that is listed at $180,000 and would like to know if they would be able to afford it...Sue tells the loan officer that they have a car payment each month of $350, and have 2 credit cards with a monthly minimum payment of $75 each.


The following can be computed:

Total Monthly Income = $4,166
Current Monthly Payments = $500
Current Debt Ratio = 12%


With Bond Program:

Estimated New Housing Payment = $1,550 (*Based on 100% Financing at 6.5%)
Estimated Closing and Prepaids = $4,625 (*No Loan Origination Fee)
Estimated Average Sellers are willing to contribute = $2,000
Total Cash Required for Closing = $2,611
4% Bond Assistance = $7,017
Actual Loan Amount = $175,623
Remaining Cash on Hand = $1600
Cash Reserves Remaining = 1

APPROVED!


Without Bond Program:

Estimated New Housing Payment = $1,566 (*Based on 100% Financing at 6.375%)
Estimated Closing and Prepaids = $6,152 (*With 1% Loan Origination Fee)
Estimated Average Sellers are willing to contribute = $2,000
Total Cash Required for Closing = $4,152
Actual Loan Amount = $180,000
Remaining Cash on Hand = $-2,552
Cash Reserves Remaining = 0


DENIED!

By: Marshall F. Graham
Aulds Horne and White
www.auldshorneandwhite.com
marshall.graham@auldshornewhite.com
(318) 869-4444